AXIS Capital Reports Fourth Quarter Net Income Available to Common Shareholders of $286 Million, or $3.38 Per Diluted Common Share and Operating Income of $252 Million, or $2.97 Per Diluted Common Share

AXS

For the fourth quarter of 2024, the Company reports: Annualized return on average common equity ("ROACE") of 20.7% and annualized operating ROACE of 18.2% Combined ratio of 94.2% Gross premiums written increased by $191 million, or 11% For the year ended 2024, the Company reports: Net income available to common shareholders of $1.1 billion, or $12.35 per diluted common share, and operating income of $952 million, or $11.18 per diluted common share Return on average common equity ("ROACE") of 20.5% and operating ROACE of 18.6% Combined ratio of 92.3% Book value per diluted common share of $65.27, an increase of $11.21, or 20.7%, compared to December 31, 2023

AXIS Capital Holdings Limited ("AXIS Capital" or "AXIS" or "the Company") (NYSE: AXS) today announced financial results for the fourth quarter ended December 31, 2024.

Commenting on the 2024 financial results, Vince Tizzio, President and CEO of AXIS Capital, said:

"2024 was an excellent year for AXIS. We delivered on the financial and operational guideposts that we shared at our Investor Day this past May, highlighted by an operating return-on-equity of 18.6% and 20.7% growth in diluted book value per share.

As a global leader in specialty underwriting, we continued to find attractive opportunities for growth. In our Insurance business, profitability was highlighted by an 89.1% combined ratio for the full year and we grew 7.7%, to reach $6.6 billion in premiums. Our Reinsurance business is producing strong, consistent profits with a 91.8% combined ratio for the full year while growing 7.9% to $2.4 billion in premiums.

In 2024, we made significant strides in enhancing our operating model through our 'How We Work program'. This included building new capabilities, investing in technology and data, and adding strong talent to complement our existing team. As we progress into 2025, we believe AXIS is poised to build on its positive momentum, while leveraging our specialty expertise to help our customers navigate an increasingly dynamic risk landscape."

Consolidated Highlights*

* Amounts may not reconcile due to rounding differences.

1 Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this press release.

Fourth Quarter Consolidated Underwriting Highlights2

Quarters ended December 31,

KEY RATIOS

2024

2023

Change

Current accident year loss ratio, excluding catastrophe and weather-related losses(4) (5)

55.7

%

55.4

%

0.3 pts

Catastrophe and weather-related losses ratio(5)

5.9

%

2.1

%

3.8 pts

Current accident year loss ratio(5)

61.6

%

57.5

%

4.1 pts

Prior year reserve development ratio

(1.2

%)

33.6

%

(34.8 pts)

Net losses and loss expenses ratio

60.4

%

91.1

%

(30.7 pts)

Acquisition cost ratio

20.1

%

20.1

%

— pts

General and administrative expense ratio

13.7

%

13.4

%

0.3 pts

Combined ratio

94.2

%

124.6

%

(30.4 pts)

Current accident year combined ratio(5)

95.4

%

91.0

%

4.4 pts

Current accident year combined ratio, excluding catastrophe and weather-related losses(5)

89.5

%

88.9

%

0.6 pts

2 All comparisons are with the same period of the prior year, unless otherwise stated.

3 Amounts presented on a constant currency basis are non-GAAP financial measures as defined in SEC Regulation G. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to prior year amounts. The reconciliations to the most comparable GAAP financial measures is provided above and a discussion of the rationale for the presentation of these items is provided later in this press release.

4 The current accident year loss ratio, excluding catastrophe and weather-related losses is calculated by dividing the current accident year losses less pre-tax catastrophe and weather-related losses, net of reinsurance, by net premiums earned less reinstatement premiums.

5 Current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, current accident year combined ratio, and current accident year combined ratio, excluding catastrophe and weather-related losses are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measure, net losses and loss expenses ratio is provided above and a discussion of the rationale for the presentation of these items is provided later in this press release.

Full Year Consolidated Underwriting Highlights

Years ended December 31,

KEY RATIOS

2024

2023

Change

Current accident year loss ratio, excluding catastrophe and weather-related losses

55.7

%

55.9

%

(0.2 pts)

Catastrophe and weather-related losses ratio

4.3

%

2.7

%

1.6 pts

Current accident year loss ratio

60.0

%

58.6

%

1.4 pts

Prior year reserve development ratio

(0.5

%)

8.1

%

(8.6 pts)

Net losses and loss expenses ratio

59.5

%

66.7

%

(7.2 pts)

Acquisition cost ratio

20.2

%

19.7

%

0.5 pts

General and administrative expense ratio

12.6

%

13.5

%

(0.9 pts)

Combined ratio

92.3

%

99.9

%

(7.6 pts)

Current accident year combined ratio

92.8

%

91.8

%

1.0 pts

Current accident year combined ratio, excluding catastrophe and weather-related losses

88.5

%

89.1

%

(0.6 pts)

Segment Highlights

Insurance Segment

Quarters ended December 31,

($ in thousands)

2024

2023

Change

Gross premiums written

$

1,700,337

$

1,583,378

7.4%

Net premiums written

1,058,083

969,871

9.1%

Net premiums earned

1,026,025

916,779

11.9%

Underwriting income (loss)

90,449

(61,675

)

nm

Underwriting ratios:

Current accident year loss ratio, excluding catastrophe and weather-related losses

52.2

%

52.0

%

0.2 pts

Catastrophe and weather-related losses ratio

7.8

%

2.5

%

5.3 pts

Current accident year loss ratio

60.0

%

54.5

%

5.5 pts

Prior year reserve development ratio

(1.2

%)

19.8

%

(21.0 pts)

Net losses and loss expenses ratio

58.8

%

74.3

%

(15.5 pts)

Acquisition cost ratio

19.5

%

19.1

%

0.4 pts

Underwriting-related general and administrative expense ratio

12.9

%

13.3

%

(0.4 pts)

Combined ratio

91.2

%

106.7

%

(15.5 pts)

Current accident year combined ratio

92.4

%

86.9

%

5.5 pts

Current accident year combined ratio, excluding catastrophe and weather-related losses

84.6

%

84.4

%

0.2 pts

nm - not meaningful is defined as a variance greater than +/- 100%

Insurance Segment

Years ended December 31,

($ in thousands)

2024

2023

Change

Gross premiums written

$

6,615,584

$

6,140,764

7.7%

Net premiums written

4,250,545

3,758,720

13.1%

Net premiums earned

3,926,036

3,461,700

13.4%

Underwriting income

427,866

260,944

64.0%

Underwriting ratios:

Current accident year loss ratio, excluding catastrophe and weather-related losses

52.1

%

51.8

%

0.3 pts

Catastrophe and weather-related losses ratio

5.5

%

3.2

%

2.3 pts

Current accident year loss ratio

57.6

%

55.0

%

2.6 pts

Prior year reserve development ratio

(0.4

%)

5.1

%

(5.5 pts)

Net losses and loss expenses ratio

57.2

%

60.1

%

(2.9 pts)

Acquisition cost ratio

19.5

%

18.7

%

0.8 pts

Underwriting-related general and administrative expense ratio

12.4

%

13.7

%

(1.3 pts)

Combined ratio

89.1

%

92.5

%

(3.4 pts)

Current accident year combined ratio

89.5

%

87.4

%

2.1 pts

Current accident year combined ratio, excluding catastrophe and weather-related losses

84.0

%

84.2

%

(0.2 pts)

Reinsurance Segment

Quarters ended December 31,

($ in thousands)

2024

2023

Change

Gross premiums written

$

274,987

$

200,915

36.9%

Net premiums written

167,466

102,384

63.6%

Net premiums earned

350,989

348,494

0.7%

Underwriting income (loss)

39,053

(212,398

)

nm

Underwriting ratios:

Current accident year loss ratio, excluding catastrophe and weather-related losses

66.0

%

64.5

%

1.5 pts

Catastrophe and weather-related losses ratio

0.3

%

0.8

%

(0.5 pts)

Current accident year loss ratio

66.3

%

65.3

%

1.0 pts

Prior year reserve development ratio

(1.2

%)

69.8

%

(71.0 pts)

Net losses and loss expenses ratio

65.1

%

135.1

%

(70.0 pts)

Acquisition cost ratio

21.8

%

22.6

%

(0.8 pts)

Underwriting-related general and administrative expense ratio

4.0

%

5.1

%

(1.1 pts)

Combined ratio

90.9

%

162.8

%

(71.9 pts)

Current accident year combined ratio

92.1

%

93.0

%

(0.9 pts)

Current accident year combined ratio, excluding catastrophe and weather-related losses

91.8

%

92.2

%

(0.4 pts)

nm - not meaningful

Reinsurance Segment

Years ended December 31,

($ in thousands)

2024

2023

Change

Gross premiums written

$

2,390,304

$

2,215,761

7.9%

Net premiums written

1,506,806

1,343,605

12.1%

Net premiums earned

1,380,199

1,622,081

(14.9%)

Underwriting income (loss)

143,610

(100,182

)

nm

Underwriting ratios:

Current accident year loss ratio, excluding catastrophe and weather-related losses

66.0

%

64.8

%

1.2 pts

Catastrophe and weather-related losses ratio

0.7

%

1.6

%

(0.9 pts)

Current accident year loss ratio

66.7

%

66.4

%

0.3 pts

Prior year reserve development ratio

(0.5

%)

14.6

%

(15.1 pts)

Net losses and loss expenses ratio

66.2

%

81.0

%

(14.8 pts)

Acquisition cost ratio

22.0

%

21.7

%

0.3 pts

Underwriting-related general and administrative expense ratio

3.6

%

4.9

%

(1.3 pts)

Combined ratio

91.8

%

107.6

%

(15.8 pts)

Current accident year combined ratio

92.3

%

93.0

%

(0.7 pts)

Current accident year combined ratio, excluding catastrophe and weather-related losses

91.6

%

91.4

%

0.2 pts

nm - not meaningful

Investments

Quarters ended December 31,

Years ended December 31,

($ in thousands)

2024

2023

2024

2023

Net investment income

$

195,773

$

186,937

$

759,229

$

611,742

Net investments gains (losses)

(108,030

)

23,041

(138,534

)

(74,630

)

Change in net unrealized gains (losses) on fixed maturities, pre-tax(6)

(228,736

)

466,386

125,742

448,477

Interest in income (loss) of equity method investments

7,264

1,328

17,953

4,163

Total

$

(133,729

)

$

677,692

$

764,390

$

989,752

Average cash and investments(7)

$

18,097,432

$

16,395,033

$

17,409,516

$

16,155,418

Pre-tax, total return on average cash and investments:

Including investment related foreign exchange movements

(0.7

%)

4.1

%

4.4

%

6.1

%

Excluding investment related foreign exchange movements(8)

(0.2

%)

3.8

%

4.8

%

5.8

%

6 Change in net unrealized gains (losses) on fixed maturities is calculated by taking net unrealized gains (losses) at period end less net unrealized gains (losses) at the prior period end.

7 The average cash and investments balance is the average of the monthly fair value balances.

8 Pre-tax total return on cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to pre-tax total return on cash and investments, the most comparable GAAP financial measure, also included foreign exchange (losses) gains of $(104) million and $60 million for the quarters ended December 31, 2024 and 2023, respectively and foreign exchange (losses) gains of $(63) million and $51 million for the years ended December 31, 2024 and 2023, respectively.

Capitalization / Shareholders’ Equity

December 31,

December 31,

($ in thousands)

2024

2023

Change

Total capital(9)

$

7,404,558

$

6,576,910

$

827,648

Book Value per diluted common share

December 31,

September 30,

December 31,

2024

2024

2023

Book value per diluted common share(10)

$

65.27

$

64.65

$

54.06

Three months ended,

Twelve months ended,

December 31, 2024

December 31, 2024

Change

% Change

Change

% Change

Book value per diluted common share

$

0.62

1.0

%

$

11.21

20.7

%

Book value per diluted common share - adjusted for dividends declared

$

1.06

1.6

%

$

12.97

24.0

%

9 Total capital represents the sum of total shareholders' equity and debt.

10 Calculated using the treasury stock method.

Conference Call

We will host a conference call on Thursday, January 30, 2025 at 8:30 a.m. (EST) to discuss the fourth quarter and year-end financial results and related matters. The teleconference can be accessed by dialing 1-877-883-0383 (U.S. callers), or 1-412-902-6506 (international callers), and entering the passcode 0758123 approximately ten minutes in advance of the call. A live, listen-only webcast of the call will also be available via the Investor Information section of our website at www.axiscapital.com. A replay of the teleconference will be available for two weeks by dialing 1-877-344-7529 (U.S. callers), or 1-412-317-0088 (international callers), and entering the passcode 7722438. The webcast will be archived in the Investor Information section of our website.

In addition, an investor financial supplement for the quarter ended December 31, 2024 is available in the Investor Information section of our website.

About AXIS Capital AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders’ equity of $6.1 billion at December 31, 2024, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor’s and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.

Website and Social Media Disclosure We use our website (www.axiscapital.com) and our corporate LinkedIn (AXIS Capital) and X Corp. (@AXIS_Capital) accounts as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, e-mail alerts and other information about AXIS Capital may be received by those enrolled in our "E-mail Alerts" program which can be found in the Investor Information section of our website (www.axiscapital.com). The contents of our website and social media channels are not part of this press release.

Follow AXIS Capital on LinkedIn (http://bit.ly/2kRYbZ5) and X Corp (https://x.com/AXIS_Capital)

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2024 (UNAUDITED) AND DECEMBER 31, 2023

2024

2023

(in thousands)

Assets

Investments:

Fixed maturities, available for sale, at fair value

$

12,152,753

$

12,234,742

Fixed maturities, held to maturity, at amortized cost

443,400

686,296

Equity securities, at fair value

579,274

588,511

Mortgage loans, held for investment, at fair value

505,697

610,148

Other investments, at fair value

930,278

949,413

Equity method investments

206,994

174,634

Short-term investments, at fair value

223,666

17,216

Total investments

15,042,062

15,260,960

Cash and cash equivalents

2,143,471

953,476

Restricted cash and cash equivalents

920,150

430,509

Accrued interest receivable

114,012

106,055

Insurance and reinsurance premium balances receivable

3,169,355

3,067,554

Reinsurance recoverable on unpaid losses and loss expenses

6,840,897

6,323,083

Reinsurance recoverable on paid losses and loss expenses

546,287

575,847

Deferred acquisition costs

524,837

450,950

Prepaid reinsurance premiums

1,936,979

1,916,087

Receivable for investments sold

3,693

8,767

Goodwill

66,498

100,801

Intangible assets

175,967

186,883

Operating lease right-of-use assets

92,516

108,093

Loan advances made

247,775

305,222

Other assets

695,794

456,385

Total assets

$

32,520,293

$

30,250,672

Liabilities

Reserve for losses and loss expenses

$

17,218,929

$

16,434,018

Unearned premiums

5,211,865

4,747,602

Insurance and reinsurance balances payable

1,713,798

1,792,719

Debt

1,315,179

1,313,714

Federal Home Loan Bank advances

66,380

85,790

Payable for investments purchased

269,728

26,093

Operating lease liabilities

106,614

123,101

Other liabilities

528,421

464,439

Total liabilities

26,430,914

24,987,476

Shareholders' equity

Preferred shares

550,000

550,000

Common shares

2,206

2,206

Additional paid-in capital

2,394,063

2,383,030

Accumulated other comprehensive income (loss)

(267,557

)

(365,836

)

Retained earnings

7,341,569

6,440,528

Treasury shares, at cost

(3,930,902

)

(3,746,732

)

Total shareholders' equity

6,089,379

5,263,196

Total liabilities and shareholders' equity

$

32,520,293

$

30,250,672

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE QUARTERS AND YEARS ENDED DECEMBER 31, 2024 AND 2023

Quarters ended

Years ended

2024

(Unaudited)

2023

(Unaudited)

2024

(Unaudited)

2023

(in thousands, except per share amounts)

Revenues

Net premiums earned

$

1,377,014

$

1,265,273

$

5,306,235

$

5,083,781

Net investment income

195,773

186,937

759,229

611,742

Net investment gains (losses)

(108,030

)

23,041

(138,534

)

(74,630

)

Other insurance related income

7,016

6,050

30,721

22,495

Total revenues

1,471,773

1,481,301

5,957,651

5,643,388

Expenses

Net losses and loss expenses

831,956

1,152,262

3,158,487

3,393,102

Acquisition costs

276,273

253,918

1,070,551

1,000,945

General and administrative expenses

189,186

169,849

666,202

684,446

Foreign exchange losses (gains)

(112,090

)

69,871

(50,822

)

58,115

Interest expense and financing costs

16,761

18,344

67,766

68,421

Reorganization expenses

26,312

28,997

Amortization of intangible assets

2,729

2,729

10,917

10,917

Total expenses

1,204,815

1,666,973

4,949,413

5,244,943

Income (loss) before income taxes and interest in income of equity method investments

266,958

(185,672

)

1,008,238

398,445

Income tax (expense) benefit

19,410

41,762

55,595

(26,316

)

Interest in income of equity method investments

7,264

1,328

17,953

4,163

Net income (loss)

293,632

(142,582

)

1,081,786

376,292

Preferred share dividends

7,563

7,563

30,250

30,250

Net income (loss) available (attributable) to common shareholders

$

286,069

$

(150,145

)

$

1,051,536

$

346,042

Per share data

Earnings (loss) per common share:

Earnings (loss) per common share

$

3.43

$

(1.76

)

$

12.49

$

4.06

Earnings (loss) per diluted common share

$

3.38

$

(1.76

)

$

12.35

$

4.02

Weighted average common shares outstanding

83,380

85,268

84,165

85,142

Weighted average diluted common shares outstanding

84,695

85,268

85,176

86,012

Cash dividends declared per common share

$

0.44

$

0.44

$

1.76

$

1.76

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENTAL DATA (UNAUDITED)

FOR THE QUARTERS ENDED DECEMBER 31, 2024 AND 2023

2024

2023

Insurance

Reinsurance

Total

Insurance

Reinsurance

Total

(in thousands)

Gross premiums written

$

1,700,337

$

274,987

$

1,975,324

$

1,583,378

$

200,915

$

1,784,293

Net premiums written

1,058,083

167,466

1,225,549

969,871

102,384

1,072,255

Net premiums earned

1,026,025

350,989

1,377,014

916,779

348,494

1,265,273

Other insurance related income (loss)

40

6,976

7,016

(289

)

6,339

6,050

Net losses and loss expenses

(603,311

)

(228,645

)

(831,956

)

(681,515

)

(470,747

)

(1,152,262

)

Acquisition costs

(199,606

)

(76,667

)

(276,273

)

(175,050

)

(78,868

)

(253,918

)

Underwriting-related general and administrative expenses(11)

(132,699

)

(13,600

)

(146,299

)

(121,600

)

(17,616

)

(139,216

)

Underwriting income (loss)(12)

$

90,449

$

39,053

129,502

$

(61,675

)

$

(212,398

)

(274,073

)

Net investment income

195,773

186,937

Net investment gains (losses)

(108,030

)

23,041

Corporate expenses(11)

(42,887

)

(30,633

)

Foreign exchange (losses) gains

112,090

(69,871

)

Interest expense and financing costs

(16,761

)

(18,344

)

Amortization of intangible assets

(2,729

)

(2,729

)

Income (loss) before income taxes and interest in income of equity method investments

266,958

(185,672

)

Income tax benefit

19,410

41,762

Interest in income of equity method investments

7,264

1,328

Net income (loss)

293,632

(142,582

)

Preferred share dividends

7,563

7,563

Net income (loss) available (attributable) to common shareholders

$

286,069

$

(150,145

)

Net losses and loss expenses ratio

58.8

%

65.1

%

60.4

%

74.3

%

135.1

%

91.1

%

Acquisition cost ratio

19.5

%

21.8

%

20.1

%

19.1

%

22.6

%

20.1

%

Underwriting-related general and administrative expense ratio

12.9

%

4.0

%

10.6

%

13.3

%

5.1

%

11.0

%

Corporate expense ratio

3.1

%

2.4

%

Combined ratio

91.2

%

90.9

%

94.2

%

106.7

%

162.8

%

124.6

%

11 Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $43 million and $31 million for the quarters ended December 31, 2024 and 2023, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

12 Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above.

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENTAL DATA

FOR THE YEARS ENDED DECEMBER 31, 2024 (UNAUDITED) AND 2023

2024

2023

Insurance

Reinsurance

Total

Insurance

Reinsurance

Total

(in thousands)

Gross premiums written

$

6,615,584

$

2,390,304

$

9,005,888

$

6,140,764

$

2,215,761

$

8,356,525

Net premiums written

4,250,545

1,506,806

5,757,351

3,758,720

1,343,605

5,102,325

Net premiums earned

3,926,036

1,380,199

5,306,235

3,461,700

1,622,081

5,083,781

Other insurance related income (loss)

94

30,627

30,721

(198

)

22,693

22,495

Net losses and loss expenses

(2,245,420

)

(913,067

)

(3,158,487

)

(2,080,001

)

(1,313,101

)

(3,393,102

)

Acquisition costs

(766,915

)

(303,636

)

(1,070,551

)

(648,463

)

(352,482

)

(1,000,945

)

Underwriting-related general and administrative expenses(13)

(485,929

)

(50,513

)

(536,442

)

(472,094

)

(79,373

)

(551,467

)

Underwriting income (loss)(14)

$

427,866

$

143,610

571,476

$

260,944

$

(100,182

)

160,762

Net investment income

759,229

611,742

Net investment gains (losses)

(138,534

)

(74,630

)

Corporate expenses(13)

(129,760

)

(132,979

)

Foreign exchange (losses) gains

50,822

(58,115

)

Interest expense and financing costs

(67,766

)

(68,421

)

Reorganization expenses

(26,312

)

(28,997

)

Amortization of intangible assets

(10,917

)

(10,917

)

Income before income taxes and interest in income of equity method investments

1,008,238

398,445

Income tax (expense) benefit

55,595

(26,316

)

Interest in income of equity method

investments

17,953

4,163

Net income

1,081,786

376,292

Preferred share dividends

30,250

30,250

Net income available to common shareholders

$

1,051,536

$

346,042

Net losses and loss expenses ratio

57.2

%

66.2

%

59.5

%

60.1

%

81.0

%

66.7

%

Acquisition cost ratio

19.5

%

22.0

%

20.2

%

18.7

%

21.7

%

19.7

%

Underwriting-related general and administrative expense ratio

12.4

%

3.6

%

10.2

%

13.7

%

4.9

%

10.9

%

Corporate expense ratio

2.4

%

2.6

%

Combined ratio

89.1

%

91.8

%

92.3

%

92.5

%

107.6

%

99.9

%

13 Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $130 million and $133 million for the years ended December 31, 2024 and 2023, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

14 Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above.

AXIS CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)

OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY

FOR THE QUARTERS AND YEARS ENDED DECEMBER 31, 2024 AND 2023

Quarters ended

Years ended

2024

2023

2024

2023

(in thousands, except per share amounts)

Net income (loss) available (attributable) to common shareholders

$

286,069

$

(150,145

)

$

1,051,536

$

346,042

Net investment (gains) losses

108,030

(23,041

)

138,534

74,630

Foreign exchange losses (gains)

(112,090

)

69,871

(50,822

)

58,115

Reorganization expenses

26,312

28,997

Interest in income of equity method investments

(7,264

)

(1,328

)

(17,953

)

(4,163

)

Bermuda net deferred tax asset (15)

(14,218

)

(176,923

)

Income tax benefit (16)

(8,711

)

(2,348

)

(18,649

)

(17,488

)

Operating income (loss)

$

251,816

$

(106,991

)

$

952,035

$

486,133

Earnings (loss) per diluted common share

$

3.38

$

(1.76

)

$

12.35

$

4.02

Net investment (gains) losses

1.28

(0.27

)

1.63

0.87

Foreign exchange losses (gains)

(1.32

)

0.82

(0.60

)

0.68

Reorganization expenses

0.31

0.34

Interest in income of equity method investments

(0.09

)

(0.02

)

(0.21

)

(0.05

)

Bermuda net deferred tax asset

(0.17

)

(2.08

)

Income tax benefit

(0.11

)

(0.02

)

(0.22

)

(0.21

)

Operating income (loss) per diluted common share

$

2.97

$

(1.25

)

$

11.18

$

5.65

Weighted average diluted common shares outstanding

84,695

85,268

85,176

86,012

Average common shareholders' equity

$

5,536,303

$

4,598,202

$

5,126,288

$

4,401,553

Annualized return on average common equity

20.7

%

(13.1

%)

20.5

%

7.9

%

Annualized operating return on average common equity (17)

18.2

%

(9.3

%)

18.6

%

11.0

%

15 Net deferred tax benefit due to the recognition of deferred tax assets net of deferred tax liabilities related to a future Bermuda corporate income tax rate of 15%, pursuant to the Corporate Income Tax Act 2023.

16 Tax expense (benefit) associated with the adjustments to net income (loss) available (attributable) to common shareholders. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

17 Annualized operating return on average common equity ("operating ROACE") is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to annualized ROACE, the most comparable GAAP financial measure is presented in the table above, and a discussion of the rationale for its presentation is provided later in this press release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this press release, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "aim", "will", "target", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.

Forward-looking statements contained in this press release may include, but are not limited to, information regarding our estimates for losses and loss expenses, measurements of potential losses in the fair value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives, our expectations regarding pricing, and other market and economic conditions including the liquidity of financial markets, developments in the commercial real estate market, inflation, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates.

Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties, and assumptions. Accordingly, there are or will be important factors that could cause actual events or results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:

Insurance Risk

Strategic Risk

Credit and Market Risk

Liquidity Risk

Operational Risk

Regulatory Risk

Risks Related to Taxation

Readers should carefully consider the risks noted above together with other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.

We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

Rationale for the Use of Non-GAAP Financial Measures

We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this press release, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, current accident year combined ratio, current accident year combined ratio, excluding catastrophe and weather-related losses, operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), amounts presented on a constant currency basis and pre-tax total return on cash and investments excluding foreign exchange movements which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Underwriting-Related General and Administrative Expenses Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses.

The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.

Consolidated Underwriting Income (Loss) Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

We evaluate our underwriting results separately from the performance of our investment portfolio. As a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to our underwriting performance. Therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).

Interest expense and financing costs primarily relate to interest payable on our debt and Federal Home Loan Bank advances. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss).

Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses in 2023 primarily related to impairments of computer software assets and severance costs attributable to our "How We Work" program. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).

Amortization of intangible assets arose from business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).

We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.

Current Accident Year Loss Ratio Current accident year loss ratio represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development. We believe that the presentation of current accident year loss ratio provides investors with an enhanced understanding of our results of operations by highlighting net losses and loss expenses associated with our underwriting activities excluding the impact of volatile prior year reserve development. The reconciliation of current accident year loss ratio to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release.

Catastrophe and Weather-Related Losses Ratio and Current Accident Year Loss Ratio, excluding Catastrophe and Weather-Related Losses Catastrophe and weather-related losses ratio represents net losses and loss expenses ratio associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events exclusive of net favorable (adverse) prior year reserve development.

Current accident year loss ratio, excluding catastrophe and weather-related losses represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development and net losses and loss expenses associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events.

We believe that the presentation of these ratios that separately identify net losses and loss expenses associated with catastrophe and weather-related events provide investors with an enhanced understanding of our results of operations due to the inherently unpredictable nature of the occurrence of these events, the potential magnitude of these losses and the complexity that affects our ability to accurately estimate ultimate losses associated with these events.

The reconciliation of catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release.

Current Accident Year Combined Ratio Current accident year combined ratio represents underwriting results exclusive of net favorable (adverse) prior year reserve development. We believe that the presentation of current accident year combined ratio provides investors with an enhanced understanding of our results of operations by highlighting the profitability of our underwriting activities excluding the impact of volatile prior year reserve development. The reconciliation of current accident year combined ratio to combined ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release.

Current Accident Year Combined Ratio, excluding Catastrophe and Weather-Related Losses Current accident year combined ratio, excluding catastrophe and weather-related losses represents underwriting results exclusive of net favorable (adverse) prior year reserve development and net losses and loss expenses associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events.

We believe that the presentation of current accident year combined ratio, excluding catastrophe and weather-related losses provides investors with an enhanced understanding of our results of operations by highlighting the profitability of our underwriting activities excluding the impact of volatile prior year reserve development and by separately identifying net losses and loss expenses associated with catastrophe and weather-related events due to the inherently unpredictable nature of the occurrence of these events, the potential magnitude of these losses and the complexity that affects our ability to accurately estimate ultimate losses associated with these events.

The reconciliation of current accident year combined ratio, excluding catastrophe and weather-related losses to combined ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release.

Operating Income (Loss) Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset.

Although the investment of premiums to generate income and investment gains (losses) is an integral part of our operations, the determination to realize investment gains (losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (losses) is somewhat opportunistic for many companies.

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses) and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business. Therefore, foreign exchange losses (gains) are excluded from operating income (loss).

Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses in 2023 primarily related to impairments of computer software assets and severance costs attributable to our "How We Work" program. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from operating income (loss).

Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, this income (loss) is excluded from operating income (loss).

Bermuda net deferred tax asset is due to the recognition of deferred tax assets net of deferred tax liabilities related to a future Bermuda corporate income tax rate of 15%, pursuant to the Corporate Income Tax Act 2023 effective for fiscal years beginning on or after January 1, 2025. The Bermuda net deferred tax asset is not related to the underwriting process. Therefore, this income is excluded from operating income (loss).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset in order to understand the profitability of recurring sources of income.

We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this press release.

We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively, in the 'Non-GAAP Financial Measures Reconciliation' section of this press release.

Constant Currency Basis We present gross premiums written and net premiums written on a constant currency basis in this press release. The amounts presented on a constant currency basis are calculated by applying the average foreign exchange rate from the current year to the prior year amounts. We believe this presentation enables investors and other users of our financial information to analyze growth in gross premiums written and net premiums written on a constant basis. The reconciliation to gross premiums written and net premiums written on a GAAP basis is presented in the 'Insurance Segment' and 'Reinsurance Segment' sections of this press release.

Pre-Tax Total Return on Cash and Investments excluding Foreign Exchange Movements Pre-tax total return on cash and investments excluding foreign exchange movements measures net investment income (loss), net investments gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by average cash and investment balances. We believe this presentation enables investors and other users of our financial information to analyze the performance of our investment portfolio. The reconciliation of pre-tax total return on cash and investments excluding foreign exchange movements to pre-tax total return on cash and investments, the most comparable GAAP financial measure, is presented in the 'Investments' section of this press release.

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